Musk should focus on his businesses, not politics, criticizes US Treasury Secretary

US Treasury Secretary Scott Bessent said on Sunday that billionaire Elon Musk, who announced the creation of his own political party the day before, should be encouraged to focus on his businesses rather than politics.

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"I think the boards of his various companies wanted him back to run those companies, which he's better at than anyone else," Bessent said when asked on CNN whether the announcement by the world's richest man worried the Trump administration.

"I imagine that these boards did not appreciate yesterday's announcement and will encourage him to focus on his entrepreneurial activities, not his political activities," he continued.

According to him, "the principles" defended by the commission led by Mr. Musk were "very popular" but, "when you look at the polls, Elon was not."

Musk and Trump have been very close

Elon Musk contributed more than $270 million to the Republican's White House campaign and, among other things, spearheaded the Department of Government Efficiency (DOGE) effort to drastically reduce federal spending. He was a regular in the Oval Office.

He left DOGE in May to take over his businesses, particularly electric vehicle specialist Tesla, whose image and sales were suffering worldwide as a result of the collaboration.

Soon after, the two men clashed bitterly and very publicly over Donald Trump's budget bill.

Firmly opposed to this text, whose impact on public finances he denounced, Elon Musk had promised to launch his own political party if the text was adopted.

He carried out his threat on Saturday, the day after the grand signing of Donald Trump's "great and beautiful law," by announcing the creation of his party, the "Party of America."

"By diving even deeper into politics..., Musk is heading in the exact opposite direction of what Tesla shareholders/investors want him to do during this crucial time in Tesla's history," Wedbush analyst Dan Ives commented Sunday.

"While the core of Musk's supporters are behind him at every turn, there is a general sense of exhaustion among many Tesla investors related to Musk's persistence on the political path," he noted, noting that the "initial relief" at his departure from DOGE was "short-lived."

"The situation has taken a turn for the worse" with this announcement, Mr. Ives said.

In electronic trading at the opening of the New York Stock Exchange, Tesla shares – historically highly volatile – were down 0.85% at midday on Sunday.